Market Comment (November 2023)
Given December is a hectic month for many reasons, it is difficult to get as much done as you would like. It is not surprising that the property market often sees a lull in December, as homeowners and prospective buyers fill their time with festive activities, or the weather is too miserable to contemplate going on property viewings.
This doesn’t mean there is nothing happening in the property market though, and if you have spare time at the end of November or start of December, updating yourself on what is happening in the market will help you improve your chances of success in 2024.
If you’re looking to make a move in 2024, Trading Places is the Leytonstone agent who ensures you make fully informed decisions that make sense.
Green Homes See Greater Demand
A recent study by property builder Redrow, who admittedly have a bias in the sector, suggests the rising cost of energy prices impacts what homebuyers want in their next property.
Some key highlights of their survey include:
l 58% of property owners are more worried about rising energy bills than they were this time last year
l There has been a 67% increase in the number of people who believe it is crucial to live in an energy efficient home
l 31% of homeowners say a low EPC rating is one of their biggest frustrations when it comes to their current house
Crucial findings when it comes to property moves include:
l 33% of homeowners say they’d rather move to an energy-efficient property rather than trying to improve their own
l 39% of prospective buyers say they would opt for a new-build, because of the perceived improvements in energy-efficiency
If this turns out to be the case, it will impact the market. It might make it harder for current homeowners looking to sell to find a willing buyer, unless their property is up to a good standard.
James Holmear, Director, at Redrow, said: “Today’s new figures clearly show that people’s concerns about energy have not gone away this year and in fact for many Britons, they are more pressing than ever. It’s no surprise therefore to see so many people considering a new home.”
Realistic Property Valuations Are Vital
It is perfectly understandable for homeowners to be proud of their home, but they cannot let emotion colour their views on property valuation. A new study suggests many homeowners overvalue their home, and this might make it difficult for them to connect with buyers.
Danny Luke, Quick Move Now's managing director said: “In 2022, homeowners were overvaluing by an average of 11%. Now they are overvaluing by an average of 15%. This growing inaccuracy suggests homeowners are struggling to keep up with the declining market. It's little surprise that owners are becoming less accurate in their valuations. The property market has seen some significant fluctuations over the last three years. Anyone who hasn't bought or sold a property in that time would likely find it very challenging to gauge where the market is currently, and how much they might realistically hope to achieve for their property.”
Danny concluded by saying: “Nationally, the average house price has fallen by 5% over the last year and average time on market has increased by 26%, so owners are having to price their properties much more competitively to achieve a sale in the current market.”
Realistic property valuations are vital, and they are a cornerstone of the services we offer in and around Leytonstone. We believe realistic property valuations create the platform for deals that run more efficiently, and our experience in the area means we are well placed to provide the most genuine assessment of properties in the local area.
It should also be noted that both Rightmove and home indicate asking prices dipped in October, and they believe this will continue into the New Year. Whether this relates to annual slowdown in the market, or realism kicking in for many homeowners, but it does appear as many property owners are taking the challenges of the market on board.
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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